Laos fears rising prices through AEC

laos supermarketThe Lao government is taking steps to reduce the anticipated negative impact on domestic goods prices ahead of the ASEAN Economic Community (AEC) integration planned for the end of 2015.

The implementation of the AEC will challenge the currently controlled price of goods as foreign goods begin to enter the Lao market without any customs or tax fees, said Lao Ministry of Industry and Commerce’s Domestic Trade Department Director General Leuam Nhongvongsithi on December 4, according to state-run daily Vientiane Times.

Once foreign products enter the Lao market under an AEC framework, the price of Lao products will fluctuate with inflation and local supply and demand, Nhongvongsithi said. A priority of the Domestic Trade Department will be to ensure that food prices remain stable as the quantity of imports is expected to exceed the quantity produced domestically.

According to government figures, in the last six months of the 2012-2013 financial year, Laos imported approximately $1.16 billion worth of goods while exports totaled some $880 million.

“It will be our job to find resolutions for price controls to ensure as little impact as possible… and to implement regulations to stop the price of local goods from fluctuating too much,” Nhongvongsithi said.

Currently there is ample production of staples such as pork, rice and poultry to satisfy domestic demand. However foodstuffs that cannot be sourced domestically will have to be imported, causing prices to rise.



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The Lao government is taking steps to reduce the anticipated negative impact on domestic goods prices ahead of the ASEAN Economic Community (AEC) integration planned for the end of 2015. The implementation of the AEC will challenge the currently controlled price of goods as foreign goods begin to enter the Lao market without any customs or tax fees, said Lao Ministry of Industry and Commerce's Domestic Trade Department Director General Leuam Nhongvongsithi on December 4, according to state-run daily Vientiane Times. Once foreign products enter the Lao market under an AEC framework, the price of Lao products will fluctuate with...

laos supermarketThe Lao government is taking steps to reduce the anticipated negative impact on domestic goods prices ahead of the ASEAN Economic Community (AEC) integration planned for the end of 2015.

The implementation of the AEC will challenge the currently controlled price of goods as foreign goods begin to enter the Lao market without any customs or tax fees, said Lao Ministry of Industry and Commerce’s Domestic Trade Department Director General Leuam Nhongvongsithi on December 4, according to state-run daily Vientiane Times.

Once foreign products enter the Lao market under an AEC framework, the price of Lao products will fluctuate with inflation and local supply and demand, Nhongvongsithi said. A priority of the Domestic Trade Department will be to ensure that food prices remain stable as the quantity of imports is expected to exceed the quantity produced domestically.

According to government figures, in the last six months of the 2012-2013 financial year, Laos imported approximately $1.16 billion worth of goods while exports totaled some $880 million.

“It will be our job to find resolutions for price controls to ensure as little impact as possible… and to implement regulations to stop the price of local goods from fluctuating too much,” Nhongvongsithi said.

Currently there is ample production of staples such as pork, rice and poultry to satisfy domestic demand. However foodstuffs that cannot be sourced domestically will have to be imported, causing prices to rise.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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